26 California film projects win tax credit lottery

The California Film Commission announced Tuesday that 26 projects have been selected in a lottery for $100 million in tax credits with the promise to film and do their post-production work in the state in the ongoing effort to stem runaway production.

Those selected in the lottery included 11 feature films, two made-for-television movies and 13 television series.

“This is the difference between us shooting here or going to another location,” said Michael Zakin, producer of a film called “Mainstream,” now in pre-production for American Zoetrope. “As a responsible producer and any professional film financier, you have to look to get the biggest benefit.

“If we did not get this, we would be looking at other states to see what they would offer.”

Under the lottery, “Mainstream” will receive $2.3 million in tax credits on its $9.3 million budget. Zakin said he hopes to begin production before the end of the year.

Lucia Gervino, senior vice president for production at BET Networks, said the $5.2 million in tax credits will enable the company to relocate its series “Being Mary Jane” from Atlanta to Los Angeles. The series, now in its third year, looks at the personal and professional life of a television host played by Gabrielle Union.

“Without the tax rebates, we would not be able to shoot in Los Angeles,” Gervino said. “It’s a huge cost savings for us.”

Additionally, she said, now that the series has won the tax credits, it will continue for some years as an additional incentive.

The California Film Commission held its lottery on June 2, but delayed announcing the winners to review and verify the projects. At that time, there were 23 projects, but some were deemed unacceptable and opened the way to select 26 projects.

Officials said it had 497 project applications this year, a 30 percent increase over 2013.

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This is the sixth year the tax credits have been offered, and California Film Commission officials estimate it has resulted in $5.39 billion in direct spending within the state, including $1.7 billion in below-the-line wages.

The program was started to compete with the incentives being offered by other states and locations to lure productions out of California.

The biggest tax credits awarded were $11.5 million to “Teen Wolf,” $8.9 million to “Rizzoli and Isles,” and $8.4 million to “Pretty Little Liars.”

A proposal to increase the tax credit by Assemblymen Mike Gatto, D-Glendale, and Assemblyman Raul Bocanegra, D-Van Nuys, has been approved by the state Assembly and key committees in the state Senate. However, it does not have a dollar amount included in how much the tax credit should increase.